Singapore has taken the lead in Asia-Pacific in commercial real estate investments in Q4 2023, according to Knight Frank’s latest report. The commercial investment volume in Singapore grew 462% quarterly and 110% over the same year, to reach USD 4.1 billion. This is the highest Q4 figure recorded in the last five years, surpassing the average quarterly increase of USD 2.5 billion by 64%, and placing Singapore at the forefront of the region.
These gains were driven by several substantial office transactions, including Shenton House (USD 402 million), VisionCrest (USD 322 million), and Wilkie Edge (USD 260 billion).
South Korea's commercial real estate investment volume bounces back, led by strategic investors and tight office market dynamics.
South Korea’s commercial real estate investment volume rebounded significantly in Q4 2023, reaching approximately USD 6.5 billion, a 52.6% increase from Q4 2022. This recovery was primarily driven by strategic investors taking advantage of the tight supply-demand dynamics in the office sector, which remained the preferred asset type.
Overall, Seoul's office market continues to attract strong investor interest despite the challenges posed by limited supply and high demand. Strategic investors play a crucial role in reshaping the market as they acquire properties for self-use and address occupier issues. On the other hand, the retail sector also saw upticks in investment volume, improving sevenfold from Q4 2022
Australia’s multi-family sector has seen full-year transaction volumes increasing seven folds from US$ 1.14 billion in 2022 to US$ 1.96 billion in 2023. Strong population growth, a large tenant base, and a severe housing supply shortage, coupled with a deep and liquid investment market, position Australia's multifamily sector for strategic growth and institutional investment.”
With strong population growth contributing to a large market of tenants and a severe lack of housing supply, combined with a deep and liquid investment market, the Australian multi-family market is strategically positioned to establish itself as the next primary institutional asset class.
The Chinese Mainland multi-family market also holds significant potential, with 2023 transaction volume nearly doubling to US$ 1.96 billion, almost twice from the previous year. Factors such as rural-urban migration, demographic shifts, and the slowdown in the property market are driving a stronger inclination towards renting and presents opportunities for the nascent multi-family sector.